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Investor Charter Depository

VISION

Towards making Indian Securities Market - Transparent, Efficient, & Investor friendly by providing safe, reliable, transparent and trusted record keeping platform for investors to hold and transfer securities in dematerialized form.

MISSION

  • To hold securities of investors in dematerialized form and facilitate its transfer, while ensuring safekeeping of securities and protecting interest of investors.
  • To provide timely and accurate information to investors with regard to their holding and transfer of securities held by them.
  • To provide the highest standards of investor education, investor awareness and timely services so as to enhance Investor Protection and create awareness about Investor Rights.

Details of business transacted by theDepository and Depository Participant (DP)

A Depository is an organization which holds securities of investors in electronic form. Depositories provide services to various market participants - Exchange, Clearing Corporations, Depository Participants (DP), Issuers and investors in both primary's well as secondary markets. The depository carries out its activities through its agents which are known as Depository Participants (DP). Details available on the link

Description of services provided by theDepository through Depository Participants (DP) to investors

Basic Services

S.NoBrief about the Activity / ServicesExpected Timelines for processing by the DP after receipt of proper documents
1.DeMaterialization of securities 7 days
2. ReMaterialization of securities 7 days
3.Mutual Fund Conversion / Destatementization5 days
4. Re-conversion / Destatementization of Mutual fund units7 days
5. Transmission of securities7 days
6. Registering pledge request15 days
7. Closure of demat account30 days
8. Settlement Instruction Depositories to accept physical DIS for pay-in of securities upto 4 p.m. and DIS in electronic form upto 6 p.m. on T+1 day

Depositories provide special services like pledge, hypothecation, internet based services etc. in addition to their core services and these include

S.NoType of Activity /ServiceBrief about the Activity / Service
1. Value Added Services Depositories also provide value added services such as
  1. Basic Services Demat Account (BSDA)
  2. Transposition cum dematerialization
  3. Linkages with Clearing System
  4. Distribution of cash and non-cash corporate benefits (Bonus, Rights, IPOs etc.), stock lending, demat of NSC / KVP, demat of warehouse receipts etc.
2. Consolidated Account statement (CAS)CAS is issued 10 days from the end of the month (if there were transactions in the previous month) or half yearly (if no transactions).
3.Digitalization of services provided by the depositoriesDepositories offer below technology solutions and e-facilities to their demat account holders through DPs:
  1. E-account opening
  2. Online instructions for execution
  3. e-DIS / Demat Gateway
  4. e-CAS facility
  5. Miscellaneous services

Details of GrievanceRedressal Mechanism

The Process of investor grievance redressal

1.Investor Complaint/ GrievancesInvestor can lodge complaint/ grievance against the Depository/DP in the following ways:
  1. Electronic mode -The complaints/ grievances lodged directly with the Depository shall be resolved within 21 days
2. Online Dispute Resolution (ODR) platform for online Conciliation and ArbitrationIf the Investor is not satisfied with the resolution provided by DP or other Market Participants, then the Investor has the option to file the complaint/ grievance on SMARTODR platform for its resolution through by online conciliation or arbitration.
[SMARTODR link to be provided by Depositories]
3.Steps to be followed in ODR for Review, Conciliation and Arbitration
  • Investor to approach Market Participant for redressal of complaint
  • If investor is not satisfied with response of Market Participant, he/she can escalate the complaint on SEBI SCORES portal.
  • Alternatively, the investor may also file a complaint on SMARTODR portal for its resolution through online conciliation and arbitration.
  • Upon receipt of complaint on SMARTODR portal, the relevant MII will review the matter and endeavour to resolve the matter between the Market Participant and investor within 21 days.
  • If the matter could not be amicably resolved, then the Investor may request the MII to refer the matter case for conciliation.
  • During the conciliation process, the conciliator will endeavor for amicable settlement of the dispute within 21 days, which may be extended with 10 days by the conciliator.
  • If the conciliation is unsuccessful, then the investor may request to refer the matter for arbitration.
  • The arbitration process to be concluded by arbitrator(s) within 30 days, which is extendable by 30 days.
For the Multi-level complaint resolution mechanism available at the Depositories

Guidance pertaining to special circumstances related to market activities: Termination of the Depository Participant

Sr.NoType of special circumstances Timelines for the Activity/ Service
1
  • Depositories to terminate the participation in case a participant no longer meets the eligibility criteria and/or any other grounds as mentioned in the bye laws like suspension of trading member by the Stock Exchanges.
  • Participant surrenders the participation by its own wish.
Client will have a right to transfer all its securities to any other Participant of its choice without any charges for the transfer within 30 days from the date of intimation by way of letter/email.

ATTENTION INVESTORS:-

Prevent Unauthorized Transactions in your Trading/Demat account -- Update your Mobile Numbers / email IDs with your Stock Brokers / Depository Participant.

Receive alerts on your Registered Mobile / email IDs for trading account transactions and all debit and other important transactions in your demat account directly from Exchange/ CDSL on the same day issued in the interest of Investors.

KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not to undergo the same process again when you approach another intermediary.

No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorize our bank to make payment in case of allotment. No worries for refund as the money remains in investor's account.

Stock Brokers can accept securities as margin from clients only by way of pledge in the depository system w.e.f. September 01, 2020. Update your email id and mobile number with your stock broker/depository participant and receive OTP directly from depository on your email id and/or mobile number to create pledge.

Check your securities/MF/ bonds in the consolidated account statement issued by NSDL/CDSL every month.